Wind energy is key to renewable electrical generation. Green energy transformation plans all feature wind energy alongside solar and hydro as a key electrical generator. The rollout of wind energy is proving difficult. Expectations for results are likely to be missed. This piece is part of series of backgrounds on why wind energy is hard.
EkaLore has previously looked at wind turbine manufacturers and the structure of the global market. The manufacturers are faced with common problems globally. Taken together these factors will make expectations hard to accomplish.
Transportation and logistics costs of moving structures, turbines, and installation materials are all increasing due to labor, fuels, and global trade conditions.
New wind turbines’ blades can be longer than 100 meters each (offshore, Vesta V236-15.0MW is 115 Meters per blade of 3 blades, GE LM 88.4p full span 180 Meters). The mounting towers for the wind turbine generators has to support the spin hub (and rotor blades), the generating equipment, and be able to mechanically be strong enough to withstand the wind pressure. A key issue is logistics transport for blades and towers. Estimates of the capabilities of existing vehicles show a mismatch in future demand and current ships. (Rystad)
The limitations here include lack of specialized ships capable of transporting and supporting installation. Historical costs from offshore oil and gas drilling platforms reinforce the spend level necessary to operate the specialized transport and installation support ships. The boom and bust of offshore and onshore activity (investment dependent) also chases high labor costs.
Full implementation of IMO 2020 (requiring VLSFO), along with global crude price increases, has increased ship fuels as well. Fuel prices are at multi-year highs.
Trade restrictions include USA restrictions (Jones Act) requiring US flagged vessels to install offshore capacity in wind farms. For availability of shipping and installation this substantially increases pricing uncertainty as many plans see delays.
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